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Administrator Guide
Last Updated: 2023-06-23
Example: Create Employee Flexible Spending Account Deduction with Limits (USA)

Example: Create Employee Flexible Spending Account Deduction with Limits (USA)

As the first step in calculating Flexible Spending Account (FSA) deductions with limits, create an employee FSA deduction.
  • Create an FSA plan.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
  1. Access the
    Create Deduction
     task.
  2. Enter these settings:
    Option Description
    Name
    FSA Employee
    Code
    FSA-EE
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Current date
    Run Category Eligibility
    Regular
    Worker Eligibility
    Benefits Employee Cost or Pay Input Exists
    Pay Component Not Previously Paid in Period
    Processing Primary Job
    Calculation
    Benefits: Employee Cost
    Input Amount Allowed?
    Select the check box.
    Calculation Proration
    Prorate Using Calendar Days
    Recalculate during Retro?
    Select the check box.
  4. Add a row in the
    Limits
     grid.
  5. In the
    Value
     field, select
    Create
    Lookup Calculation
     and enter these settings:
    Option Description
    Name
    Healthcare FSA Annual Limit
    Category
    Payroll
    Lookup Table
    Health Flexible Spending Arrangement (FSA) Maximum IRS Contribution Limit
    Numeric Search Criteria
    Category, Type
    Payroll
    Date Extract Calculation
    Year: Payment Date - Year
  6. In the
    Balance Period
     field, select
    YTD - Current Calendar Year (based on Payment Date)
    .
  7. Enter these settings on the
    Non-Effective Dated
     tab:
    Option Description
    Groups
    Federal Taxable Reduction [USA]
    FICA Taxable Reduction [USA]
    FSA Employee Deduction [USA]
    Pre Tax Deductions
    Section 125 Cafeteria Plan [USA]
    State Withholding Taxable Reduction [USA]
    Benefit Plans
    Select the company FSA benefit plan.
Create an employer FSA deduction.